American Business Bank Announces Its Results for the Year Ended December 31st 2012, Including 20% Loan Growth and 10% Earnings Growth over 2011

LOS ANGELES--(BUSINESS WIRE)--AMERICAN BUSINESS BANK (Bank) (OTCBB: AMBZ) today reported net income of $10,884,000 for the year ended 2012, a 10% increase over the $9,886,000 earned in 2011. Earnings per share (basic) for 2012 increased to $2.46 versus $2.24 in 2011. Shares outstanding at the end of the year totaled 4,432,331.

“It’s a tribute to our staff that they, once again, provided our shareholders a double digit return on equity in a single digit market”

“It’s a tribute to our staff that they, once again, provided our shareholders a double digit return on equity in a single digit market,” said Robert Schack, Chairman.

“American Business Bank has had another great year by putting our customers first and by acting as a financial advisor to contribute to their success,” said Don Johnson, Chief Executive Officer.

“The Bank managed to hit all of its goals for the year 2012 and is looking forward to continuing to build on the Bank’s success in 2013,” said Leon Blankstein, President. “The quality of our people, the culture of the Bank and the execution of our business model continue to serve our shareholders well.”

Total assets increased 11% or $131 million to $1.305 billion at December 31, 2012 as compared to $1.174 billion at December 31, 2011. The loan portfolio (net) increased 20% or $85 million to $494 million at December 31, 2012 as compared to $409 million at December 31, 2011, while investments and federal funds sold increased $35 million. Deposits increased 4% or $38 million to $1.067 billion at December 31, 2012 as compared to $1.029 billion at the end of 2011.

During 2012, Net Interest Income increased $1,706,000 or 4.9% to $36,621,000 from $34,915,000 in 2011.

Non-Interest income during 2012 increased $715,000 or 16.6% to $5,024,000 from $4,309,000 in 2011.

Non-Interest expense for 2012 increased $512,000 or 2.2% to $23,788,000 from $23,276,000 during 2011.

Asset quality at quarter-end remains excellent, with $1,144,000 non-performing loans or 0.2% of total loans; and, no OREO. At the end of December 2012, the allowance for loan losses stood at $10,537,000 or 2.09% of loans.

AMERICAN BUSINESS BANK headquartered in downtown Los Angeles offers a wide range of financial services to the business marketplace. Clients include wholesalers, manufacturers, service businesses, professionals and non-profits. The Bank has opened four Loan Production Offices in strategic areas including our Orange County Office in Irvine, our South Bay Office in Torrance, our San Fernando Valley Office in the Warner Center and our Inland Empire Office in Ontario.

American Business Bank
Figures in $000, except per share amounts
CONSOLIDATED BALANCE SHEET (unaudited)
					For the period ended:
					December			December			Change
					2012			2011			%
Assets:
	Cash & Equivalents				$	31,852		$	27,059		17.7	%
	Fed Funds Sold					5,000			0		N/A
	Interest Bearing Balances					28			1,034		-97.3	%
	Investment Securities:
		US Agencies				408,803			385,826		6.0	%
		Mortgage Backed Securities				178,855			193,637		-7.6	%
		State & Municipals				145,460			123,349		17.9	%
		Other				132			138		-4.3	%
			Total Investment Securities			733,250			702,950		4.3	%
	Gross Loans:
		Commercial Real Estate				267,406			225,965		18.3	%
		Commercial & Industrial				194,645			156,167		24.6	%
		Other Real Estate				36,903			30,238		22.0	%
		Other				5,320			5,918		-10.1	%
			Total Gross Loans			504,274			418,288		20.6	%
				Allowance for Loan & Lease Losses		(10,537	)		(8,934	)	17.9	%
			Net Loans			493,737			409,354		20.6	%
	Premises & Equipment					720			1,087		-33.8	%
	Other Assets					39,916			32,078		24.4	%
		Total Assets			$	1,304,503		$	1,173,562		11.2	%
Liabilities:
	Demand Deposits				$	522,001		$	459,317		13.6	%
	Money Market					464,348			483,481		-4.0	%
	Time Deposits and Savings					80,251			85,760		-6.4	%
			Total Deposits			1,066,600			1,028,558		3.7	%
	FHLB Advances / Other Borrowings					117,600			48,000		145.0	%
	Other Liabilities					16,568			10,512		57.6	%
		Total Liabilities			$	1,200,768		$	1,087,070		10.5	%
Shareholders' Equity:
	Common Stock & Retained Earnings				$	90,605		$	78,613		15.3	%
	Accumulated Other Comprehensive Income					13,130			7,879		66.6	%
		Total Shareholders' Equity			$	103,735		$	86,492		19.9	%
		Total Liabilities & Shareholders' Equity			$	1,304,503		$	1,173,562		11.2	%
Capital Adequacy:
	Tangible Common Equity / Tangible Assets					7.95	%		7.37	%	--
	Tier 1 Leverage Ratio					7.19	%		6.72	%	--
	Tier 1 Capital Ratio / Risk Weighted Assets					16.29	%		16.58	%	--
	Total Risk-Based Ratio					17.55	%		17.84	%	--
Per Share Information:
	Common Shares Outstanding					4,432,331			4,427,862		--
	Book Value Per Share				$	23.40		$	19.53		19.8	%
	Tangible Book Value Per Share				$	23.40		$	19.53		19.8	%

American Business Bank
Figures in $000, except per share amounts
CONSOLIDATED INCOME STATEMENT (unaudited)
			For the 12-month period:
			December			December			Change
			2012			2011			%
Interest Income:
	Loans & Leases		$	22,544		$	22,122		1.9	%
	Investment Securities			16,824			16,339		3.0	%
		Total Interest Income		39,368			38,461		2.4	%
Interest Expense:
	Money Market, NOW Accounts & Savings			1,905			2,453		-22.3	%
	Time Deposits			542			778		-30.3	%
	Repurchase Agreements / Other Borrowings			300			315		-4.8	%
		Total Interest Expense		2,747			3,546		-22.5	%
Net Interest Income				36,621			34,915		4.9	%
	Provision for Loan Losses			(1,624	)		(1,977	)	-17.9	%
Net Interest Income After Provision				34,997			32,938		6.3	%
Non-Interest Income:
	Deposit Fees			1,073			1,012		6.0	%
	Realized Securities Gains / (Losses)			3,702			2,663		39.0	%
	Other			249			634		-60.7	%
		Total Non-Interest Income		5,024			4,309		16.6	%
Non-Interest Expense:
	Compensation & Benefits			14,270			13,169		8.4	%
	Occupancy & Equipment			1,568			1,612		-2.7	%
	Other			7,950			8,495		-6.4	%
		Total Non-Interest Expense		23,788			23,276		2.2	%
Pre-Tax Income				16,233			13,971		16.2	%
	Provision for Income Tax			(5,349	)		(4,085	)	30.9	%
Net Income			$	10,884		$	9,886		10.1	%
Per Share Information:
	Average Shares Outstanding (for the year)			4,430,503			4,413,946		--
	Earnings Per Share - Basic		$	2.46		$	2.24		9.7	%

American Business Bank
Figures in $000, except per share amounts
			December			December			Change
			2012			2011			%
Performance Ratios
	Return on Average Assets (ROAA)			0.88	%		0.90	%	--
	Return on Average Equity (ROAE)			11.36	%		13.19	%	--
Asset Quality Overview
	Non-Performing Loans		$	924		$	2,239		-58.7	%
	Loans 90+Days Past Due			220			0		N/A
		Total Non-Performing Loans	$	1,144		$	2,239		-48.9	%
	Restructured Loans (TDR's)		$	6,423		$	134		4693.3	%
	Other Real Estate Owned			0			0		--
	ALLL / Gross Loans			2.09	%		2.14	%	--
	ALLL / Non-Performing Loans *			921.07	%		399.02	%	--
	Non-Performing Loans / Total Loans *			0.23	%		0.54	%	--
	Non-Performing Assets / Total Assets *			0.09	%		0.19	%	--
	Net Charge-Offs		$	-		$	-		--
	Net Charge-Offs / Average Gross Loans			0.00	%		0.00	%	--
	*	Excludes Restructured Loans